Price Gouging & Disaster Recovery

Upon the declaration of an abnormal economic disruption by the governor, a person is prohibited from charging any other person a price for the following goods or services that is grossly in excess of the price generally charged for the same or similar goods or services in the usual course of business:

“Emergency supplies” includes, but is not limited to, water, flashlights, radios, batteries, candles, blankets, soap, diapers, temporary shelters, tape, toiletries, plywood, nails, and hammers; or

“Medical supplies” includes, but is not limited to, prescription and nonprescription medications, bandages, gauze, isopropyl alcohol, and antibacterial products.

“Consumer food items” includes any article that is used or intended for use for food, drink, confection, or condiment by a person or animal.

Price gouging complaints received by Consumer Affairs are individually reviewed. Price increases are generally considered by evaluating several factors including the pre-existing price agreements and increases in cost by suppliers. High prices are not automatically price gouging and may be justifiable based on increased costs to the business.

Under the law, the Attorney General’s Office can put a stop to price gouging and seek refunds for consumers. The courts may also impose civil penalties against price gougers for every violation. The law applies to all levels of the supply chain from the manufacturer to the distributor to the retailer.

Under the law, the Attorney General’s Office can put a stop to price gouging and seek refunds for consumers. The courts may also impose civil penalties ($1,000 per violation) against price gougers. 

The attached document provides more details on price gouging. 

Click here to file a formal complaint using our online form: https://www.tn.gov/attorneygeneral/working-for-tennessee/consumer/file-a-complaint.html

You may also report price gouging by calling 615-741-4737 or emailing consumer.affairs@ag.tn.gov

Report as many details as possible such as the name and location of the merchant, the date and time of your purchase, the method of payment, the price of the item in days prior to the sudden price increase, and the price you paid. Always keep your receipts. Include pictures of the displayed price if possible.

Once urgent needs such as food, shelter, and safety are met, consider your financial obligations. Contact your insurance company, mortgage lender, credit card company, and other creditors to let them know about your situation. Most of them have ways to help. If you can’t live in your home, check with your utility companies to see if you can shut off services such as electric, gas, and cable in order to reduce expenses.

Registering with the Federal Emergency Management Agency (FEMA) is the first step toward qualifying for disaster assistance, which may include grants to help pay for temporary housing, personal property replacements and other serious disaster-related needs not covered by insurance.

• After a disaster, file your claim as soon as possible. Call your insurance company or agent with your policy number and other relevant information. Your policy may require that you make the notification within a certain time frame.
• Cooperate fully with the insurance company. Ask what documents, forms, and data you will need to file a claim. Keep notes detailing the name of the person you spoke with and the day, time and content of all conversations with insurance companies, creditors and relief agencies.
• Be certain to give your insurance company all the information it needs. Incorrect or incomplete information will only cause a delay in processing your claim.
• If your home is damaged to the extent that you cannot live there, ask your insurance company if you have coverage for additional living expenses.
• Document the disaster by taking photographs or video of any damage.
• Make the repairs necessary to prevent further damage to your property (cover broken windows, leaking roofs and damaged walls). Don’t have permanent repairs made until your insurance company has inspected the property and you have reached an agreement on the cost of repairs. Be prepared to provide the claims adjuster with record of any improvements you made prior to the damage.
• Maintain any damaged personal property for the adjuster to inspect.
• Ask the adjuster for an itemized explanation of the claim settlement offer.
• Save all receipts, including those from the temporary repairs covered by your policy.
  
  

• Before hiring a professional such as a contractor, consumers should first verify that the individual is properly licensed to work in Tennessee by visiting verify.tn.gov to conduct a license check.
• Ask questions and get references from people you trust. Consider searching the BBB’s website for ratings and reviews of contracting and repair companies.
• Avoid high pressure sales tactics urging you to act quickly before signing a contract. Take time to make a good decision.
• Be wary of contractors selling repairs door- to-door, especially when they ask to receive payment upfront or offer deep discounts.
• Get more than one bid and ask for at least three references. Ask for proof of necessary licenses, building permits, insurance, and bonding. Record the license plate number of the contractor.
• Generally, do not pay more than 1/3 of the cost upfront and make sure you have the terms of the payments to be made in writing.
• If a contractor promises you something, get it in writing.
• Keep a record of your property damage and any repairs made to your property.
• You should also take photos of any repair work you believe was not done correctly.
• If you can’t cover all of your expenses, contact your creditors to negotiate a payment plan.
• If you are dealing with a company or person who promises to remove debris from your property, ask them to list the services they will provide in writing. Ensure that your contract provides for you to make an inspection and approve the work before making the final payment.

The TN Department of Commerce & Insurance (TDCI) licenses many of the professionals who play a role in rebuilding, including contractors, home inspectors, and insurance agents. If you witness unlicensed activity or other potential violations of laws and rules involving our licensees, visit tn.gov/commerce to file a complaint

If your car was submerged in at least a foot of standing water for more than an hour, have it checked out by a repair shop. Even if it runs, hidden damage could pose problems later on. If a disaster has left you in need of a new or used automobile, the Tennessee Motor Vehicle Commission urges consumers to be wary of vehicle scams.

•  Always buy from a licensed seller. Check a salesperson’s license at verify.tn.gov before you buy.
• Do your due diligence before you buy. Research the car’s value. Take a test drive and get a vehicle history report at vehiclehistory.gov. If purchasing a used car, have an independent mechanic inspect the car.
• Get copies of all paperwork. Don’t leave without copies of everything that you signed.

While many people seek to help during times of disaster, unfortunately there is also an increased risk for scams and fraud. Watch out for:

• Upfront fees to help you claim services, benefits, or get loans. No government agency charges application fees.
• Con artists posing as government employees, insurance adjusters, law enforcement officials, or bank employees. Confirm credentials by calling the agencies if necessary.
• Organizations with names similar to government agencies or charities.
• Limited time offers. Don’t be pressured to make a decision on the spot or to sign anything without having enough time to review it.
• Fake rental listings. If the offer sounds too good to be true or the property owner can’t show you the property beforehand, it’s a bad sign.